On December 30, 2005, Future, Incorporated paid $2,000,000 for land. At December 31, 2006, the current value of the land was $2,200,000. In January 2007, the land was sold for $2,250,000. Ignoring income taxes, by what amount should stockholders’ equity be increased for 2006 and 2007 as a result of the above facts in current value financial statements?
|
2006 |
2007 |
|
|
a. |
$0 |
$ 50,000 |
|
b. |
$0 |
$250,000 |
|
c. |
$200,000 |
$0 |
|
d. |
$200,000 |
$ 50,000 |